IOWA CITY, Iowa (KCRG) – The Iowa City School District is facing a budget crisis after transferring $10 million from its insurance fund to its general fund to cover cash flow and payroll without school board approval.
The district expected payroll costs to rise 2% to 3% this school year over last year’s costs. Payroll costs actually rose 9%, meaning the district is set to spend $13.5 million more this year than it budgeted.
Superintendent Matt Degner took responsibility for the questionable $10 million transfer but did not explain why staff made that decision without board input…